Fighting resumes in Strait of Hormuz as Iran fires on U.S. ships
Fighting resumed in the Strait of Hormuz on Thursday, with Iran reportedly firing on U.S. Navy ships and the U.S. responding with air strikes inside Iran. President Donald Trump called the exchanges "just a love tap" while maintaining the ceasefire remains in effect despite the escalation. Iran halted nearly all non-Iranian traffic through the waterway, which normally carries 19.87 million barrels of oil daily before the U.S.-Israel bombing campaign began on February 28. Shell CEO Wael Sawan warned investors the oil market faces a near one billion barrel shortage as the conflict continues.
Hundreds of Ships Trapped as Strait of Hormuz Shipping Paralyses
A Malta-flagged tanker carrying 1 million barrels of crude oil arrived off South Korea's western coast Friday after passing through the Strait of Hormuz. The Odessa tanker will berth at HD Hyundai Oilbank's offshore mooring facility to unload its shipment. Japan's Mitsui O.S.K. Lines confirmed three of its vessels transited the Strait in April without paying Iran's proposed tolls. A Chinese-owned oil tanker was attacked off the UAE coast after its bow was hit. Hundreds of ships and an estimated 20,000 seafarers remain trapped inside the Gulf as traffic through the strait has been paralyzed.
Labour loses 1,000+ seats as Reform UK surges in UK elections
Labour lost over 1,100 local council seats, nine Scottish Parliament seats, and 21 Welsh Senedd seats in Thursday's UK elections. Prime Minister Keir Starmer rejected calls for his resignation, saying he would not "walk away and plunge the country into chaos." Reform UK was the primary beneficiary, gaining more than 1,200 council seats in England. Financial markets showed nervousness about potential Labour replacements, with analysts warning a leadership change could trigger a gilts market crisis comparable to Liz Truss's mini-Budget. No clear successor has emerged within the party.
CIA assessment: Iran can sustain US blockade for months
A classified CIA assessment concludes Iran can sustain the US blockade for three to four more months, relying on floating oil storage, managed production, and overland smuggling routes. Iranian Foreign Minister Abbas Araghchi accused President Trump of choosing "reckless military adventure" over diplomacy, asserting Iran's military capacity stands at 120 percent of pre-war levels, contradicting Trump's claim it has been reduced to 18 to 19 percent. US Secretary of State Marco Rubio said Washington expects Iran's formal response by Friday. The White House said Iran loses approximately $500 million in daily revenue.
April payrolls disappoint at 55,000
The U.S. economy added 55,000 nonfarm payrolls in April, keeping the unemployment rate steady at 4.3 percent, the Bureau of Labor Statistics reported Friday. Economists at Bank of America highlighted a "K-shaped" recovery, with top earners gaining 6 percent after-tax while the bottom group gained just 1.5 percent. Markets recovered from a Thursday pullback, with the S&P 500 up 1.5 percent and the Nasdaq climbing 2.8 percent for the week despite renewed hostilities with Iran in the Strait of Hormuz.
Apple and Intel Strike Preliminary Chip Manufacturing Deal
Apple and Intel have reached a preliminary agreement for Intel to manufacture some chips for Apple hardware, according to a Wall Street Journal report published Friday. The two companies engaged in intensive talks for more than a year and hammered out a formal deal in recent months. Apple shares rose about 2 percent following the news, while Intel stock was last up about 14 percent. Supply chain analyst Ming-Chi Kuo said Intel is expected to start shipping Apple's lowest-end M processor as soon as 2027.
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- Instagram drops end-to-end encryption. From May 2026, Meta staff and potentially government officials may access direct messages previously visible only to senders and recipients, citing low user adoption while digital rights groups warn of privacy erosion.
- Cloudflare cuts 1,100 jobs as AI transforms workforce. The web infrastructure firm, which posted 34% revenue growth, says it is restructuring for the "agentic AI era" despite strong quarterly results, with shares falling 14% on the news.
- China exports surge 14.1%, beating expectations. April's export growth accelerated sharply from March's 2.5%, while imports also climbed 25.3%, with AI-related goods driving demand. The strong trade figures come just days ahead of a planned Trump-Xi meeting in Beijing.
- US sanctions China, Hong Kong entities over Iran's drone program. Ten individuals and companies face penalties for supporting Iran's military drone production, days before Trump's scheduled meeting with Xi.
- Taiwan parliament OKs $25bn defense budget, less than Lai sought. Taiwan's opposition-controlled parliament passed its own version of the defense package, reducing President Lai Ching-te's $40bn request by roughly 38 percent. The vote comes days before Trump's summit with Xi, who opposes U.S. arms sales to Taiwan.